Question: A couple will retire in 50 years; they plan to spend about 30,000 per year in retirement, which should last about 25 years. They believe they can earn 10% interest on retirement savings.
1) If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year
2) How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend 60,000 on their childs college education?